On Monday, January 12, in Limassol’s Agios Nikolaos area, a cornerstone-laying ceremony took place for a new state housing complex for low-income citizens. Let us recall that the project is being implemented as part of the updated social policy and, as Cyprus President Nikos Christodoulides emphasized, has already become a visible result of the current government’s economic decisions.
The head of state noted that it is especially important for him to see the practical effect of the policies being pursued. According to him, the key achievement of this initiative was the resumption of active work by the Cyprus Land Development Corporation (KOAG), which had effectively not implemented projects for three years. This, the president explained, was the reason for his personal participation in the ceremony.
What the new residential complex includes
The social project in the Agios Nikolaos area предусматривает the construction of a modern residential quarter consisting of four 6-storey buildings. They will house apartments of various layouts — from compact one-bedroom units to spacious family apartments with four bedrooms. All apartments are intended exclusively for rent and will be offered to applicants who meet the established social criteria.
A special feature of the project is that the rent will be below market prices in Limassol, which remains one of the most expensive cities in Cyprus in terms of real estate. The land plot for the project was allocated by the local municipality, which helped reduce the overall cost and maintain its social focus.
Timelines, budget, and scale of the program
Construction is planned in two phases, and full completion of the project is expected by 2030. The total cost of the complex is estimated at €26 million, and the land plot at €9 million. A significant portion of the funding, about €16 million, was provided by the state as a grant, with the remaining funds allocated by KOAG.
The president separately emphasized that it was under the current administration that the work was reactivated after a long period of inactivity. Previously, the corporation’s activities were largely financed through the investment citizenship program, which was closed at the end of 2020. After its termination, it became necessary to revise the organization’s financing model and priorities.
Who the housing is intended for and how to apply
The new complex is seen as a response to an acute social problem, primarily for young people and families who cannot afford housing at market prices. The authorities do not rule out that in the future a rent-to-buy format may be considered, under which a tenant could purchase the home after a certain period of residence. This issue, the president said, is already being raised by citizens and is at the discussion stage.
According to the latest data from KOAG management, the entire affordable housing program across the country includes 439 housing units, with construction already started on more than 180 properties. The largest project is being implemented именно in the Agios Nikolaos area of Limassol, where 138 rental apartments are planned.
Applications will be submitted exclusively through the updated official KOAG website and only after the actual start of construction of each specific project. This approach was chosen so that future tenants immediately receive accurate information about costs and terms, without the risk of price revisions.
A step toward solving the housing crisis
The launch of the first affordable housing complex in Limassol has become an important signal for the market and society. Against the backdrop of rising real estate and rental prices, this project is seen as the beginning of a broader transformation of Cyprus’s housing policy. The authorities emphasize that this is not a one-off initiative, but a long-term strategy aimed at supporting those who most need stable and affordable housing.